Says govt can maximise property value
MAPUSA
Former union minister and ex-chairman of the now-liquidated Mapusa Urban Cooperative Bank (MUCB), Ramakant Khalap, has welcomed the government’s decision to purchase the bank’s prime property in Mapusa but he asserted that the bank could still be saved and suggested that the government could still revive it.
The State government has approved the purchase of MUCB’s headquarters, ‘Nandadeep’, for Rs 25 crore, intending to clear dues owed to depositors. The property, located in the heart of Mapusa, spans approximately 2,500 square metres.
Khalap argued that by increasing the Floor Area Ratio (FAR) in Mapusa, the government could substantially raise the value of the property. “If the FAR is increased to 300 or even 400, the MUCB property can fetch a much higher amount for the government,” he said.
Providing a rough estimate, Khalap stated that a built-up area of 1,000 square metres on the ground floor alone could generate Rs 50 crore, considering the prevailing market rate of Rs 5 lakh per square metre. “This is just for the ground floor. The total value could be significantly higher,” he added.
According to Khalap, the total claims from depositors amount to Rs 70 crore, while MUCB’s assets, including offices in Panaji, Reis Magos and other locations, are valued at Rs 65 crore. He suggested that proceeds from asset sales could be sufficient to clear depositor dues, leaving surplus funds for bank revival.
“The government can restart the bank with an initial branch, safeguarding the cooperative banking sector in the State,” Khalap emphasised. He further pointed out that the central government has recapitalised banks in the past and that the State government could adopt a similar approach to revive MUCB.
While the government’s move to acquire the property has been seen as a step towards resolving depositor claims, Khalap remains optimistic that MUCB could be brought back to life, ensuring long-term benefits for the cooperative banking sector.
